France's Danone Overhauls China Unit

BEIJING—French food giant Danone SA's baby-food arm is overhauling management and marketing at its infant formula business in China following state media allegations that it paid hospital staff to use its products and boost sales.

Dumex Baby Food Co. found "shortcomings" and problems with management in China during an internal investigation in September of its marketing practices there, a statement from the company said. The company found practices that "violated companywide policies" in its...